The combination of the Covid pandemic and energy crisis linked to the Ukraine war have put global financial stability in an unenviable position. Faced with rising uncertainty, policy-makers around the world have imposed a range of policies and restrictions. These, in turn, have rocked businesses and supply chains, causing the global economy to contract.
Due to the convergence of large economic deficits, historic levels of corporate debt and stimulus measures adopted by governments, countries now find themselves fighting inflation. In its simplest definition, inflation is a rise in prices and can result in a fall in purchasing power. Indeed, it is a reaction to a number of economic factors.
It is also an area where France appears to be more resilient than its neighbours. In August 2022, the country’s inflation rate (measured by the consumer price index) was 5.8%, compared with 7.9% in Germany, 9.1% in Italy and 9.9% in the UK.
